> ## Documentation Index
> Fetch the complete documentation index at: https://wiki.worldrepublic.org/llms.txt
> Use this file to discover all available pages before exploring further.

# Party subsidies

> Funding based on electoral performance.

Democracy promises political equality, but when only wealthy or well-connected groups can afford to run a party, that promise is hollow. The gap between the right to participate and the ability to participate is a funding gap.

The World Republic closes that gap with **party subsidies**—a system where parties earn **world drachma** directly from their electoral performance, so that any movement with popular support has the financial foundation to professionalize and grow.

## How it works

For each election cycle, a fixed pool of WDD is allocated from the Community Treasury. This pool is distributed to parties strictly based on the percentage of votes they receive.

### The formula

We use a **fixed pool proportional distribution** model:

> **Party subsidy** = (party votes ÷ total votes) × total pool size

For example, if the election pool is **100,000 WDD**:

* A party with **10%** of the vote receives **10,000 WDD**.
* A party with **1%** of the vote receives **1,000 WDD**.

### No minimum threshold

Unlike many national systems that require a party to reach a certain percentage of the vote to receive funding or seats, **World Republic party subsidies have no minimum threshold.**

Every single vote translates into funding. This ensures that even small, niche, or emerging movements can grow organically.

## Comparison: The barrier to entry

We designed our system to lower the barrier to entry for political innovation.

|                   | World Republic party                   | National party                          |
| :---------------- | :------------------------------------- | :-------------------------------------- |
| **Formation**     | **Instant** (permissionless)           | **Weeks/months** (bureaucratic)         |
| **Registration**  | **Free** (no fees)                     | **Expensive** (filing fees + lawyers)   |
| **Ballot access** | **Automatic** (all registered parties) | **Difficult** (signatures + thresholds) |
| **Subsidies**     | **From vote #1** (no threshold)        | **High threshold** (often 5%+)          |

## Distribution process

We follow the global standard for public funding of political parties: subsidies are distributed over time, not upfront.

In traditional democracies, parties receive monthly transfers. In the World Republic, we upgrade this to **continuous streaming**.

1. **Manual review:** Election results are reviewed to verify no technical anomalies occurred.
2. **Linear vesting:** Once approved, subsidies vest linearly over 1 year (released second-by-second). This gives parties immediate access to earned funds while ensuring long-term accountability.
3. **Withdrawal:** Vested WDD accumulates in the parties' World Republic app wallet, which can be withdrawn to an onchain wallet at any time.

## Why this matters

* **Financial independence:** Parties are accountable to voters, not donors.
* **Level playing field:** New parties can compete with established ones.
* **Direct impact:** When a citizen votes, they are literally funding the party they support.